Ab Disruptors ETF Price & Performance (FWD)

Will take you through the presentation today and fill questions at the end. As you can see from our slide, plenty of highlights to talk you through. Which have been delivered by our terrific teams right across Australia. A brief but important note of thanks to the six fifty people at Fleetwood who are working tirelessly across our three operating segments. Your efforts have led to these significantly improved results. I look forward to our continued progress for the remainder of FY 2025 and into 2026. Our people at all levels of the organization are guided by our vision and values in seeking to achieve our purpose. Our vision to be the leader in reimagining sustainable by five core values. Zero harm to our people and the environment, collaboration, integrity, accountability and innovation. These values guide the way we operate on a day to day basis and have been integral to creating a positive culture within each of our businesses. As this ladders up to our overarching purpose as a well grounded set of values, an ambitious vision a compelling purpose set us up for enduring success. I'm confident this will be a positive impact on the remainder of FY 2025 and our future years at Fleetwood.

As we review the first half 2025 financial year and look forward to the coming years in terms of our strategic outlook, I'm proud to report a significant progress on our build, transform and grow strategy. And its positive impact on our performance in the first half. As mentioned previously, our build transform and growth strategy provides the roadmap for medium to long term improvement in the quality and consistency of earnings Community Solutions, Building Solutions and RV Solutions. The build phase of our strategy has centered on improving our capability, our systems and processes lifting our brand awareness to underpin our long term sustainable growth. This has seen our teams aligning national workflows and developing common processes and procedures to deliver consistently [indiscernible] Australia's largest modular manufacturer, the build, transform and grow strategy remains our focus in the Building Solutions segment in particular with ongoing work centered on executing the growth phase of our plan. We've invested in enhancing our capabilities and our focus on building a quality pipeline of work that Moving to our highlights, here is where we can clearly see the benefit of the build transform and growth strategy. Across our Community Solutions, Building Solutions and RV Solutions businesses.

I'm very pleased to take you through these highlights. In the first half of FY 'twenty four, we saw a half on half improvements in revenue, earnings, profit and cash flow. Topped off by a significantly larger dividend to our valued shareholders. Our earnings before interest and taxes surged to $10,100,000 up 65% on the previous [indiscernible] Considering the one off restructuring costs and impairment, part of our strategic alignment for success in RV Solutions, our underlying EBIT reached $18,300,000 reflecting nearly three times the increase compared to the first half of FY twenty twenty four. [indiscernible] Similarly, our net profit after tax reached $7,400,000 on a statutory basis an increase of 18% on the first half of FY 'twenty four. These results not only demonstrate our commitment to financial growth, but also reflect the resilience and dedication of our entire team. Line with our strong performance, we've declared a fully franked dividend in the first half of the year at $0.115 per share. Almost five times the dividend paid in the first half of last year. Reinforcing our commitment to maximizing returns to our shareholders. The share buyback commenced in the 05/14/2024 results in the acquisition of more than 530,000 shares the December, Now amid this success, we've also taken the prudent approach approach with regards to the RV Solutions business.

In an industry which continues to face challenges. Board conducted a strategic review of RV Solutions as cost of leading pressures continued to negatively impact consumer discretionary spend right across this segment. Resulting in lower demand with direct impact on our margins and profitability. The outcome of this review resulted in a $6,000,000 impairment and a one off $1,900,000 restructuring costs to right size and reduce our cost base in this business. This has helped to provide a platform for RV Solutions to continue contributing to Fleetwood on a more sustainable basis. We'll be able to provide more detail on this when we go dive deeper into the RV Solutions segment shortly. [indiscernible] Looking at our half on half progress, this press shows an underlying EBITDA over multiple consecutive halves to paint a very clear picture of the increasingly important role of our community solutions Building Solutions segments to our business the relatively smaller role for RB Solutions. As you can see Community Solutions has been a standout segment for our business in recent arms and we see this continuing alongside our ongoing growth in Building Solutions. As well as a return to profitability for RV Solutions in the back half of this financial year following the strategic review.

I'm now pleased to hand over to our CFO, Kate Chandler, to talk you through some of our financial performance.

Thanks, Bruce. Ankle Blumley, everyone. In terms of revenue, in the half Fleetwood delivered very strong revenue growth of 19% supported by contract wins in 71% in Community Solutions at the Sea Ripple Village in Carapa. The EBIT in first half was $10,400,000 up from $6,300,000 last year and the net profit after tax was $4,700,000 up from $3,900,000 last year. The step up in EBIT performance was off the back of Building Solutions revenue growth improved project execution and community solutions occupancy. Cost of living pressures continue to impact RV solutions, as consumers slow their spending on discretionary items. Particularly in the OEMCaravan segment, Cross the path to reporting half, RV Solutions reported operating losses due to softer demand high in book costs and an inability to pass on price increases [indiscernible] Resulting in lower margins and profitability. These factors required an independent assessment of AVE Solutions current value. As a result, the Board has taken the decision to impair the current value of goodwill. By $6,000,000 The impairment of goodwill is not deductible for tax. Resulting in a higher effective tax rate and a full 100% impact on the net profit after tax. In addition to this, a strategic review of the RV Solutions business unit manufacturing operations has resulted in $1,900,000 to right size the cost base.

These costs included $650,000 to make good make good provisions for lease exits, As the business reduces warehousing and factory footprint, $800,000 in redundancy costs as the business moves to a more simplified manufacturing model and $500,000 in stock op solutions provisions.

For raw materials and other stock no longer required as part of this review. Excluding the impact of non recurring [indiscernible] The underlying EBIT was $18,300,000 a $12,000,000 improvement on the first half last year. Turning now to cash flow.

Our cash position as a business remains very good. Supported by solid underlying earnings and disciplined working capital management. As we've been able to deliver a cash conversion of 98%, free cash flow of $21,600,000 and a closing cash position of $57,500,000 Our net CapEx spend was $3,200,000 with most of the spend directed towards community solutions [indiscernible] where we upgraded Wi Fi and kitchen facilities In the half, we bought 531,000 shares for $1,100,000 as part of the share buyback. Turning now to capital management.

Reflective of the significant improvement in earnings, positive outlook and a strong balance sheet, the company has declared a fully franked interim dividend of $0.115 per share. This is up from $0.09 on the $0.025 per share declared for the first half of last year.

Since the commencement of the buyback, we have acquired just under 1,100,000.0 shares to this reporting day. And pleasingly our share price is considerably higher when we put the facility back in place. In May 2024. Going forward, we continue to maintain our dividend policy to pay 100% of net profit after tax. I will now hand back to Bruce Nicholson, will take you through the segment results. Back to you, Bruce.

Thanks, Kate. Sorry, great. Set of results. And with prudent capital management, fighting even stronger returns for our shareholders. To help us to continue to provide returns for our shareholders, in Community Solutions, we've once again seen a very strong set of results where we delivered earnings before interest and of $16,800,000 on $33,500,000 of revenue. Revenue almost doubled in the half and EBIT nearly quadrupled compared to the first half of FY 'twenty four. Increased occupancy rates driven by contracted rooms from clients like Rio Tinto and Saipem Cluff have significantly lifted our profitability. And the Osprey Village in Port Hedon remains fully occupied and with a waitlist for potential tenants. [indiscernible] Our Singapore facility in Carrasco had an occupancy of 71% for the first half and even with the category four cyclone in December, the site remained fully operational providing a safe haven for our staff and clients in the region. I'm also very proud to showcase some of the fine examples of our Building Solutions projects that help to underpin our strong first half results. A great collection of diverse projects right across our great nation. I'd particularly like to highlight the Women's Shelter Support Project supplied from our Perth facility in Western Australia, which we're incredibly proud of.

As it plays directly into our purpose to create innovative spaces so people can thrive. This project not only provides a safe and supportive environment for women and children in need, but also demonstrates our commitment to community and social responsibility. The shelter is a testament to our dedication to using innovative design and construction techniques to address pressing social issues. Our teamwork tirelessly to ensure the facility was completed to the highest standards reflecting our core values. Our Building Solutions business continues to improve with EBIT more than doubling in the first half to $7,100,000 compared to $3,200,000 in the corresponding first half [indiscernible] We maintained focus on delivering quality revenue in modular construction supported by our education panel based business and device diversifying our revenue streams into health, mining, lifestyle villages, housing and industrial sectors whilst targeting sustainable margins. This helps us to exceed our short term EBIT margin targets. With an improved order bank and growing gross margins as the business target or made for modular projects, as well as well disciplined project execution delivered a step change in performance compared to the first half of last financial year. Current order bank stands at $137,000,000 up from $100,000,000 in December 2020.

Reflecting our steady growth trajectory. Our R and D solutions as we've said has faced a some significant challenges due to cost of living pressures reducing consumer discretionary spending particularly in the OEM segment Kate referred to. [indiscernible] the short term outlook is subdued, we remain optimistic about the long term prospects. Not shying away from the half year performance, difficult trading conditions impacted sales to our OEMs combined with an inability to pass on price increases with those same OEM customers. Mentioned earlier, a strategic review of RB Solutions business by the Board resulted in a $6,000,000 impairment and a one off $1,900,000 restructuring cost to right size the business and lower our base cost. The plans we have implemented to reduce operating costs and generate return for profitability on the Second Half Of This Year Are Currently Well On Track We A Large Fleet Of Caravans In Service Across Australia supports ongoing aftermarket demand for our products and services we saw this element of the segment hold up well in the first half. Our ability to adapt and innovate will be key as we navigate these challenges. Despite these challenges, I'm pleased to report that our new product innovations such as the Invicta Store our sandwich panel walls and our aluminum frames are continuing to show promising growth and continue to offset some of the decline we're seeing in the OEM markets.

Now let's move on to the segment by segment strategy update an outlook. Our strategic focus for community solutions business in the second half of FY twenty twenty five and beyond is centered around optimizing Cerebral Village leveraging the emerging opportunities in the Carafa market. We're focusing on maximizing the potential for Cerebral across economic cycle, which involves securing the base contracted business while strategically continuing to layer in additional demand. We In the recent announcement of additional rooms contracted through to May 2025, our Cerebral Village now has an annualized occupancy of 80% for FY 2025, up from the previously announced 72%. We Looking ahead to next year, Fleetwood is set to benefit from a promising outlook with contracted occupancy already at 73% for FY '26 and further upside opportunities expected with high project demand in the region. These factors continue to position us well to capitalize on the increased planned projects across the oil, gas, fertilizer, green energy sectors in the region. The Paratha region continues to benefit from a diverse array of projects and infrastructure requirements utilizing Supol in FY '26 and beyond. And our Osprey Village continues to demonstrate robust demand for remote worker accommodation and social housing with a strong waitlist for tenants highlighting the critical need for accessible housing solutions in the region.

Committed to addressing this demand, ensuring we're not only providing shelf but also fostering community well-being. [indiscernible] Another key pillar of our strategy is the commercialization of our Glide technology platform. Digital and ESG market leader. Not only enhances operational efficiency, but also strengthens our relationship with our new existing customers. By extending and enriching those partnerships, we can provide innovative solutions that address the evolving need of our clients ensuring we're at the forefront of our industry. In addition, we continue to prudently explore [indiscernible] and transfer or build to rent opportunities in the mining, residential and key worker segments. These strategies will allow us to balance the cyclical nature of our business, creating a stable revenue streams whilst also supporting community development. For our Building Solutions business at FY 'twenty five is to maintain a momentum and expedite our transformation efforts. Innovating and evolving from builder to manufacturer. As we've said, the build, transform and grow strategy is the roadmap to drive improved quality and consistency of earnings. Especially in the Building Solutions segment. The continued focus on build, transform and growth strategy will help us to reach the medium term 15% return on capital employed hurdle now expected to occur twelve months ahead of schedule through a more simplified business model focused on improving utilization and productivity, across our factory network.

Our clear vision is to establish ourselves as a leader in modular manufacturing, specifically by winning made for modular projects that exemplify our commitment to innovation and We're already seeing growth in the acceptance of modular construction as quality, cost effective and timely solution. This trend is driving growth to our brand recognition and opens new opportunities opportunities across various sectors including lifestyle, housing, [indiscernible] new worker accommodation and even education expansions. The leader in modular we're actively collaborating with various levels of government community housing organization and industry partners to demonstrate the benefits of modular construction. Our commitment to this is reflected in our current order book which has grown significantly. The outlook for Building Solutions continues to improve the current order bank of $137,000,000 up 37% from the first half of last financial year. In addition to the Autobank, Building Solutions drives approximately 50% of its revenue from repeatable long term panel agreements the education and housing sectors across three states it to generate a 20% to 30% revenue uplift the second half compared to the second half of last financial year. Together these initiatives are positioning us not just for immediate success, but for long term growth and leadership in the modular manufacturing space.

While the RV Solutions sector is facing headwinds over the next year. The RV Solutions business is expected to return to profitability in the second half of this year on a lower cost base. This directly reflects the strategic review of the business and the sizing of our cost base to ensure we will maintain resilient through this economic cycle. Our ability to adapt and innovate is key as we navigate the current economic challenges while positioning ourselves for future success. In light of the current economic pressures impacting consumer discretionary spending, we will continue to implement further targeted price increases to help recover costs. To support our segment strategy, we're undertaking a digital refresh of the Kamek brand, This includes simplifying our sales process through digital commerce platforms, which will enhance our online and retail sectors, our branches and our dealer network.

By making this easier for customers to engage us, we'll drive sales and improve our overall customer On other areas of focus continue to be developing structural products solutions such as the damage, tunnel walls, doors and aluminum frames. By enhancing our capabilities in these areas, we aim to increase profitability and deliver superior product that meet the evolving needs customers in this segment. We'll also continue to introduce new products and accessories for both OEMs and the aftermarket segment as this is vital for keeping our offerings fresh and relevant ensuring we capture the attention for both existing and new customers. So in conclusion, we are very pleased with our financial results for the first half of the financial year and the outlook. Looking ahead, we are confident that the growing acceptance of modular construction coupled with our strengthening order book and forward contracted rooms in community solutions will drive continued earnings growth momentum in FY 2025 and beyond. Our commitment to innovation and sustainable practice position us well for future opportunities We remain focused on quality of revenue through diversification generating sustainable margins, increasing utilization and reducing overheads, to improve our earnings. This is underpinned by our capable leadership across the business to successfully As Kate said, the company's dividend policy remains to pay at 100% of net profit after Our balance sheet is very strong and will be prudent in the way that we leverage this strength to support our growth.

Wrapping up and before we open for questions, want to thank you, our valued shareholders for your ongoing support and trust in our vision. Together, we'll continue to build Transform and Go, ensuring that Fleetwood remains a leader in modular constructions and community solutions while supporting the RV sector. [indiscernible] As a result, we are confident we've established a solid foundation with growing momentum to deliver sustainable earnings and shareholder returns. Thank you and we're now happy to take any questions. Thank you.

First question comes from Matthew Chen from Moelis. Please go ahead. Thanks. Hi, Bruce and Kate.

Well done.

Just a couple of questions if I could. Just around [indiscernible] margin We kind of how should we think about like the second half because the occupancy is going to be pretty close to pretty close to full. It's going to step up again from that first half How should we think about that? In terms of the margin Thanks for the question, Matthew. You're right. So we do talk about a large proportion of costs at Suripol are fixed and therefore as as occupancy increases, we do have a spread. So a combination, as you say, we're at about 90% occupancy with the second half.

With the new contracted rents we would expect our EBIT margin to be expanded in the second half over the first half.

Great. And then just on the modular, can I just clarify Sorry, Building Solutions, I mean, that 15% return on capital target that's come twelve months earlier, which is great? So that's expected to be achieved like through FY 2025. And can you just remind us the capital base for that $70,000,000 Matt, it can vary. That's a guide. I think it's sitting higher than that at the end of first half.

Okay. But yes, if you have a look at notary in the account, you can form a view and you can potentially look at year end position, which is slightly lower and take maybe take a blend of two of those.

Two points.

And I think where Kate's going with that is we do have we do have working capital shifts in that business. So month on month the working capital does move and can move move quite materially. So Yes. And we do it in a very targeted way. We might have additional inventory that we might build that we know that we are going to get an order from a government department. So you can move by [indiscernible] Okay. Great. I might leave it then and jump back in the queue. Thanks Matt. Thanks Matt. Thank you. Your next question comes from Caleb Wang from Pack Partners. Hi, Jason Keg, congrats on the results. Just on I guess, Building Solutions, given that second half is traditionally a bit seasonally weaker. How much of the margin expansion this comes around was from increased utilization in the factories versus the efficiency gains? You're right. We seasonally do have a little bit softer second half because just the timing of the education spend. So we're in that right now. A bit hard to guide you without sort of being too specific I'm not trying to be smart here, Caleb. So thanks for the question. [indiscernible] It varies and it is a bit of a state by state.

I think I'd like to say we just look at the national base It does depend on where the work is and how we move the work around in the business, Caleb.

So With that, expect a slight softening in the revenue outlook. Our GPs are holding up very strongly in the Building Solutions business. We have no project in that business that are currently losing money or that are of great concern to us at all.

The portfolio of projects in there is quite good. So you're right, there'll be a softer revenue and I'll sort of if you work out what that might look like in terms of March We are aiming to hold our margin, but of course, revenue does play into that a bit.

And And, Kayla, just building on that, I think The mix of work, so in one of the outlook slides where we indicated that we'll be doing more in installation work in our education business. Less manufacturing and that can be slightly lower revenue. And more in and out but it is revenue in any case.

You. [indiscernible] maybe you guys mentioned that New South Wales government also looking to do something similar to QBuild program Queensland [indiscernible] you guys seeing on the ground?

So the New South Wales government has a modular task force. We have not seen great progress or traction in that space. So it's not a high focus for us at the moment. We sort of will put attention where we think there's real opportunities. We do think there is an opening opportunity in schools infrastructure in New South Wales. You may have seen the Sydney Morning Herald a couple of weeks ago. The desperate need for classrooms as 90,000 students coming to the New South Wales education system. So we're reengaging with schools infrastructure in New South Wales around the education [indiscernible] But I think it would be wrong to think that New South Wales is going to follow QBuild with the MMC housing projects in Queensland I think there's still a little way off that. I said, there is a task force and they've had a handful of very small tenders go out two or three hours But we don't think that's going to land a big volume of work for us in the next twelve months. And last one for me, just on the silver book contract with Sapien Clough. So the option to take on additional rooms is that fixed price or can you get a negotiation on price there?

They have the optionality to take additional rooms and we have the optionality if only if they're available. So it does have pricing built into the structure. I won't disclose what that pricing was or how structured, but extensively once they contract further rooms, they become part of the take or pay.

Thank you. Your next question comes from Charlie King from K Capital. Please go ahead.

Yes, well done on the the cash flow in particular, but around that [indiscernible] guessing one offs, can you just run through the Sorry if I missed it, I jumped on late. But the tax inflow and then working capital how should we think about that for the full year? I suppose I'm just trying to get a sense of Yes, what the free cash flow looks like going forward. Clearly, it's helping you pay a very large distribution dividend, well done. Clearly, the market is very happy with that, but just trying to get a sense as to how to think about that cash flow going forward. I suppose your occupancy is going to increase, so you're going to get a benefit division with Cripple. So yes, just appreciate Any thoughts on the free cash flow going forward? Thank you. [indiscernible] Given that it goes to cash. So on the cash flow slide, if you just take a quick look at it, we've been targeting a cash conversion of between, I guess, 90100%. Might not we might always get there, but when we make deliberate decisions to hold more inventory, for another [indiscernible] we may not hit that. But we are targeting between 90100%.

We expect a similar CapEx number next half. So going to free cash flow because we've got some things that we want to do to shore up Cripple into the the future, which are a little bit on the strategic side, but not large by $7,000,000 and We expect it will be sort of a $5,000,000 to $6,000,000 full year CapEx number. In terms of interest, roughly the same. That's there's a one off item there. You can probably see we've got an inflow of tax refund from the ATO. Since coming on board a year ago, I've been working to finalize previous tax returns and that's that's potentially a bit of an abnormal for the period, but it's not really working capital. But it is that has been partly why we've been able to generate such good free cash flow. There's $4,500,000 net there. But at some point, we on these fabulous earnings, we will need to start our reinstallments again with the ATO. And then our lease repayments of minus $4,300,000 in the half. You could more or less expect to see that every half. Because that is lease footprint. Of course, it will shrink ever so slightly with the two leases, that we are exiting for in RBS, but look, it's not going to be material.

So based on that and your view on our EBITDA, [indiscernible] I'll leave you to reflect on how you think much cash might generate next Thanks, Ali. Thank you. Your next question comes from Gavin Allen from Uroz Holies. Please go ahead. Bruce and Kate, hello. Thanks for that great results. Just a couple for me, just flushing out some some of the questions with a bit of more of a bigger picture view, I guess. So Building Solutions, great turnaround there. Any particular regions that are doing better over better than others perhaps? And the flip side of that, other regions that you can see improvements in continuing over the next year or so? First one.

Thanks, Gavin. Good question. Queensland and WA continue to perform very, very well, very strongly both those segments. As you would have seen, the $40,000,000 for 60 homes in Queensland has been good in the first half that has carried into the second and there is more work in that pipeline. So Queensland continue to be strong and strengthening. WA has had a significant improvement as well. Actually, New South Wales, Vic and South Australia are actually all grown year on year. So they've actually all done, but each business is actually done better year on year. So I'm actually quite pleased there. If you were to sort of get really granular, Victoria is probably one of the softer markets but underpinned by we have a very strong position government work down there with the education sector. So again, we have a great cornerstone business down there to to grow from. But again, all five of the businesses have grown year on year, Gavin. So I guess that's my call out there.

Yes, that's good. And it probably leads me to the next question because one of the things you do point out in your summary is that you expect to deliver a 15% return on capital employed by the end of FY twenty twenty five, which is great. But I guess the natural question beyond then occurs is what's next? And it just occurs to me that Vic having been a bit softer in more recent times Maybe there's improvements there at a point and how to think about that in terms of what was previously the capital employed in a business that's had a bit of impairment over the journey? [indiscernible] I am quite comfortable that the balance sheet is very, very clean. I think that's not the issue. If you just focus on the expect we're trying to grow this business, Anika, 15% ROE ROCE at the end of this financial year is not the end of the game for us, Gavin. So we want to grow the business well beyond that. But I would take this position. We have done a fair bit of work rightsizing our Victorian business because it has been softer. That has benefited the business and will benefit the business going forward.

We We're not seeing any decline in the education spend down there. In fact, we're seeing that holding well and we there's going to be increase. Have seen some slowing in the newer. So there was a whole kindergarten program supposed to kick off in Victoria that has slowed right down now. But that hasn't impacted in affected our internal VSBA and relocatable schools program. So we're actually got very solid base to build from. So how do I think about it? I think we've got to find other opportunities in Victoria to prosecute on top of that building block. And Brendan and the team down there are doing a pretty good job of that at the moment. New South Wales is strengthening every month for us. WA continues to have a very solid auto bank and Queensland a very solid auto bank. South Australia is a little bit patchy, but it's a very small market. And not a significant issue for us in terms of distraction. But again, you would have seen in the pictures there did a great job of discovery parks down in South Australia a good quality pipeline coming through. We just got to land some of those in the next month or two.

So does that sort of answer your question, Gav?

Yes, 100%. I mean, I just think it sort of talks to the the potential opportunity beyond that sort of 15% on on the current capital employed. So that's great. And then just one other one, we've talked in the past a fair bit about opportunities in villages around build and operate opportunities. How would we think about that suite of possible opportunities in your mind? Is it you have to make your own weather there or is there Clear and present opportunities that are presenting to you?

So you may have seen if you've been looking and we didn't make a big song on that, we actually brought Marni in to head up the communities business because she had different set of skills in this area coming back from her background. So Why we did that and why that's whether for keyword accommodation or social housing. We feel that we could actually play a more active role in those. So I would say right now there is not something in our immediate vicinity target. And as I said in the presentation, will always be very prudent with that. We're not going to rush in and do something silly. We understand that the company has previously made mistakes. We don't intend to do that.

So Marni is currently working and she's been here about six months now.

Marni is currently working on a list of projects that are at very early stages. She's talking to a number of key clients Tends to be the ones we're focused on right now are government led type projects. There are community housing ones that are emerging and there are others in the energy transition sector that are emerging. But right now, the immediate stuff that she's focused on is in the government sector and oddly enough in your part of the world GAV are in WA. But I wouldn't say there's anything in the immediate future that we'd be taking to the Board in the next three to six months And we've had a look at M and A We don't know that there's anything of good value out there at the moment. That can change. So we aren't necessarily it isn't certainly something we're prosecuting in an aggressive way anyway. If something comes to us, we see value, we'll have a look at it on a case by case basis, Kev.

Understood. We'll stay tuned. That's plenty for me. Thanks guys. Congratulations once again.

Thanks, Gettes. See you next week.

Is it?

Thank you. Your next question comes from Matthew Chen from Moelis. Please go ahead.

Hi, Ian. Just wanted to double check on payout policy going forward. I think there's a reference in some of the materials that policies to pay 100% of NPAT remains unchanged for FY 2025. Just early indications of how you're kind of thinking about that into 2020 It's actually a board call, Matthew.

The board discussed it at least quarterly what we want to do. So that's I would argue that not argue, I would declare that's a watching brief for the Board. And as we just talked about, there is nothing in our immediate future. So one of the positives is the Building Solutions business strategy is not capital intensive. So if you think back a few years ago, there was this plan to do automation and spend large money on automation factory. That plan has emerged and we're not we've got haven't got a capital intensive issue there. We're also as I said quite prudently looking at community solutions if a really valuable accretive value accretive opportunity came to us in that business, then clearly Fleetwood have to consider our our dividend policy at that point. As I said, there's nothing in the immediate future in the next six months. But things change, Matthew. So I can't speak for what the Board chooses to do. I'm sorry. But we have just kept it on the agenda for the Board such that if there is an opportunity or we need cash, remember we don't have any drawn debt either. Matthew. So we do have a very strong balance sheet.

Thanks.

Thank you. There are no further questions at this time. Now head back to Mr. Nicholson for closing remarks.

Thank you very much. I'd like to thank everybody for joining us today. We're very, very pleased as you can tell with the results We look forward to the roadshow next week and if investors need to speak to us, please let us know.

Thank you.

Thank you. Thank you for participating. You may now disconnect.